ERP Implementation in Industrial Construction Company

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A SPECIAL SECTION

Selected Peer-Reviewed Articles from International Conference on Energy, Environment and Information System (ICENIS 2016), Semarang, Indonesia, 11–12 October, 2016

Guest Editors: Purwanto, Sudarmadji, Rene Van Berkel, Wan Maznah Wan Omar, and Ferry Jie Adv. Sci. Lett. 23, 2197–2199 (2017)

[Abstract] [Full Text - PDF] [Purchase Article]

The Ability of Typha angustifolia L. for Degradation of BOD and COD in Wastewater of Tofu Industry Using

Phytoremediation

Pertiwi Andarani, Badrus Zaman, and Anggit Ospar Permatasari Adv. Sci. Lett. 23, 2200–2203 (2017)

The Influence of Total Solid (TS) Content to Biogas Production from Rice Husk Waste During Solid State

Anaerobic Digestion (SS-AD)

Syafrudin, WinardiDwiNugraha, Indra Hukama Ardinata, LarasatiGumilangKencanawardhani, HashfiHawali Abdul Matin, and Budiyono

Adv. Sci. Lett. 23, 2204–2206 (2017)

Development of Static Differential Method GNSS CORS UDIP for Monitoring Land Subsidence in Semarang Demak

B. D. Yuwono, H. Z. Abidin, H. Andreas, I. Gumilar, M. Awaluddin, and Najib Adv. Sci. Lett. 23, 2207–2210 (2017)

The Role of Vegetation and Landscape in the Energy Efficiency—of Tropical Building Eddy Prianto, Jaka Windarta, and Bernard Harianja

Adv. Sci. Lett. 23, 2211–2214 (2017)

Pollution Assessment in Surface Sediments of Trace Metal in Port of Tanjung Emas Semarang Agus Tjahjono, Azis Nur Bambang, and Sutrisno Anggoro

Adv. Sci. Lett. 23, 2215–2219 (2017)

Electronic Device Web-Based Monitoring System Using Atmega8535 Microcontroller Alamsyah, Ardi Amir, and Mery Subito

Adv. Sci. Lett. 23, 2220–2222 (2017)

Mobile Base Least Significant Bit Method for Steganography

Fransiskus Xaverius Kurniawan Malo, Albertus Joko Santoso, and Pranowo Adv. Sci. Lett. 23, 2223–2227 (2017)

The Use of Fuzzy Logic to Predict Business Opportunities by Consumer Behaviour Aryanti Aryanti and Ikhthison Mekongga

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Adv. Sci. Lett. 23, 2228–2230 (2017)

GIS-Based Optimization Method for Utilizing Coal Remaining Resources and Post-Mining Land Use Planning:

A Case Study of PT Adaro Coal Mine in South Kalimantan Mohamad Anis, Arifudin Idrus, Hendra Amijaya, and Subagyo Adv. Sci. Lett. 23, 2231–2235 (2017)

A Review Study of Infectious Waste Generation and the Influencing Factors in Medical Waste Management

Novi Fitria and Enri Damanhuri Adv. Sci. Lett. 23, 2236–2238 (2017)

The Textile Waste Degradation of Indigosol Blue Dye by Fention Electrical Process Velantika and Purwanto

Adv. Sci. Lett. 23, 2239–2242 (2017)

CFD Analysis of Temperature Distribution and Relative Humidity in Humidifying Sample House with Liquid

Desiccant Concentration of 50% and Temperature of 10 ^oC

Eflita Yohana, Bambang Yunianto, Ratrya Putra Hunadika, Shofwan Bahar, and Azza Alifa Muhammad

Adv. Sci. Lett. 23, 2243–2245 (2017)

The Performance of Combined Technology Upflow Anaerobic Reactor (UAR)-Activated Sludge (AS) for

Treating Batik Wastewater

Rustiana Yuliasni, Nanik Indah Setyaningsih, Novarina Irnaning Handayani, and Agung Budiarto Adv. Sci. Lett. 23, 2246–2250 (2017)

Reducing Acid Mine Drainage Formation Using Locally-Available Soil Ameliorants A. Munawar, A. M. H. Putranto, and Y. H. Bertham

Adv. Sci. Lett. 23, 2251–2253 (2017)

pOn Implementing Wireless Smart Egg-Laying Hens Coop Control System Agung B. Prasetijo, Eko D. Widianto, and Febri K. Nugroho

Adv. Sci. Lett. 23, 2254–2256 (2017)

A Flood Early Warning System Design Based on Water Level Using Fuzzy Logic and Short Message Service Gateway

Ahyar Supani, Slamet Widodo, and Maria Agustin Adv. Sci. Lett. 23, 2257–2259 (2017)

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Supply Energy Sustainability by Conservation Program in Cathment Area Sentot Purboseno

Adv. Sci. Lett. 23, 2260–2264 (2017)

The Production of Bioethanol from Nira Aren (Arenga pinnata Merr) Using the Biocatalyst of Saccharomyces

cerevisiae

NettiHerlina, NurhasmawatyPohan, and Meilani M. Manurung Adv. Sci. Lett. 23, 2265–2267 (2017)

Analysis on the Implementation of Green Budgeting in Central Java Province Abdul Fikri Faqih, Sudharto P. Hadi, and Hartuti Purnaweni

Adv. Sci. Lett. 23, 2268–2272 (2017)

Numerical Solution of Distribution Model 2-D of Concentration on Chemical Oxygen Demand in Waste

Stabilization Ponds

Sunarsih, Farikhin, Henna Rya, and Anies Adv. Sci. Lett. 23, 2273–2276 (2017)

The Optimization of Ureterolithiasis Image with a Contrast Analysis on MSCT of Urinary Tract with Variation

of Slice Thickness and Window Setting

Nanang Sulaksono, Suryono Suryono, and Jeffri Ardiyanto Adv. Sci. Lett. 23, 2277–2280 (2017)

Information Extraction of Optical Answer Sheet (LJK) Based on Image Processing Using Smartphone Camera

Erwin Wahyu Ary Hermawan, Sunu Wibirama, and Agus Bejo Adv. Sci. Lett. 23, 2281–2284 (2017)

Text Classification to Detect Student Level of Understanding in Prior Knowledge Activation Process

Febby Apri Wenando, Teguh Bharata Adji, and Igi Ardiyanto Adv. Sci. Lett. 23, 2285–2287 (2017)

Enterprise Resource Planning Implementation in Industrial Construction Company Oktalia Juwita and Yan Watequlis Syaifudin

Adv. Sci. Lett. 23, 2288–2291 (2017)

Plants Watering Schedule Algorithm Using the Edge Coloring Graph Technique Nelly OktaviaAdiwijaya and Slamin

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Adv. Sci. Lett. 23, 2292–2295 (2017)

Naïve Bayes Algorithm for Lung Cancer Diagnosis Using Image Processing Techniques Kusworo Adi, Catur Edi Widodo, Aris Puji Widodo, Rahmat Gernowo, Adi Pamungkas, and Rizky Ayomi Syifa

Adv. Sci. Lett. 23, 2296–2298 (2017)

Groundwater Conservation in Batu City East Java: An Ecohydrological Approach Eni Maulidiyah, Sutrisno Anggoro, and Suherman Suherman

Adv. Sci. Lett. 23, 2299–2301 (2017)

Model of the Relationship Between Consumption of Sawn Timber with the Consumer Expenditure on Food,

Non-Food Products and Savings (Case Study in Solok City, West Sumatra Province, Indonesia) FeldyJumairi, Aziz NurBambang, and JafronWasiqHidayat

Adv. Sci. Lett. 23, 2302–2304 (2017)

Survey of Energy Conservation Behavior Measures for the Academic Community on Campus: A Case in

Semarang State University, Indonesia Said Sunardiyo, Purwanto, and Hermawan Adv. Sci. Lett. 23, 2305–2307 (2017)

Community Involvement in the Proper Evaluation Criteria (Assessment Program Performance Rating Company)

South Sumatra Province

Akhmad Najib, Joni Emirzon, Hilda Zulkifli, and Alfitri Adv. Sci. Lett. 23, 2308–2310 (2017)

Biodegradation Chemical COD and Phenol Using Bacterial Consortium in AF2B Reactor Batch Prayitno, Hadi Saroso, Sri Rulianah, and Diah Meilany

Adv. Sci. Lett. 23, 2311–2313 (2017)

The Application of SWAT (Soil and Water Assessment Tool) Model to Predict the Hydrology Characteristics

Garang Watershed in Central Java Province Imam Saifudin, Suripin, and Suharyanto Adv. Sci. Lett. 23, 2314–2317 (2017)

Analysis of Vegetation Ecosystem Litoral, Supralitoral, and Central Forests in Panjang Island, Jepara, Central Java

Abdul Malik, Fuad Muhammad, and Hartuti Purnaweni

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Advanced Science Letters

ISSN: 1936-6612 (Print): EISSN: 1936-7317 (Online)

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ASSOCIATE EDITORS

Diederik Aerts (Quantum theory, Cognition, Evolution theory) Brussels Free University, Belgium.

Yakir Aharonov (Physics, Quantum Physics) School of Physics and Astronomy, Israel.

Peter C. Aichelburg (Gravitation) University of Vienna, Austria.

Jim Al-Khalili (Foundations of Physics, Nuclear Reaction Theory) University of Surrey, UK.

Jake Blanchard (Engineering Physics, Nuclear Engineering) University of Wisconsin–Madison, USA.

Simon Baron-Cohen (Cognitive Neuroscience) University of Cambridge, UK.

Franz X. Bogner (Cognitive Achievement) University of Bayreuth, Germany.

John Borneman (Anthropology) Princeton University, USA.

John Casti (Complexity Science)

Internationales Institut für Angewandte Systemanalyse, Austria.

Masud Chaichian (High Energy Physics, String Theory) University of Helsink, Finland.

Sergey V. Chervon(Gravitation, Cosmology, Astrophysics) Ulyanovsk State Pedagogical University, Russia

Kevin Davey (Philosophy of Science) University of Chicago, Chicago, USA.

Tania Dey (Colloids/Polymers/Nanohybrids) Canada.

Roland Eils (Bioinformatics)

Deutsches Krebsforschungszentrum Heidelberg, Germany.

Thomas Görnitz (Quantum theory, Cosmology) University of Frankfurt, Germany.

Bert Gordijn (Nanoethics, Neuroethics, Bioethics) Radboud University Nijmegen, The Netherlands.

Ji-Huan He (Textile Engineering, Functional Materials) Soochow University, Suzhou, China.

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Nongyue He (Biosensors/Biomaterials) China.

Irving P. Herman (Materials and Solid State Physics) Columbia University, USA.

Dipankar Home (Foundations of Quantum Mechanics) Bose Institute, Kolkata, India.

Jucundus Jacobeit (Climate, Global Change Ecology) University of Augsburg, Germany.

Yuriy A. Knirel (Bioorganic Chemistry)

N. D. Zelinsky Institute of Organic Chemistry, Russia.

Arthur Konnerth (Neurophysiology, Molecular Mechanisms) University of Munich, Germany.

G. A. Kourouklis (Physics Solid State Physics) Aristotle University Thessaloniki, Greece.

Peter Krammer (Genetics)

Deutsches Krebsforschungszentrum Heidelberg, Germany.

Andrew F. Laine (Biomedical Engineering) Columbia University, USA.

Minbo Lan (Organic Functional Materials) China.

Martha Lux-Steiner (Physics, Materials Science) Hahn-Meitner-Institut Berlin, Germany.

Klaus Mainzer (Complex Systems, Computational Mind, Philosophy of Science) University of Augsburg, Germany.

JoAnn E. Manson (Medicine, Cardiovascular Disease) Harvard University, USA.

Mark P. Mattson (Neuroscience)

National Institute on Aging, Baltimore, USA.

Lucio Mayer (Astrophysics, Cosmology) ETH Zürich, Switzerland.

Efstathios Meletis (Physics, Thin films, Nanomaterials, Corrosion, Tribology) University of Texas at Arlington, USA.

Karl Menten (Radioastromy)

Max-Planck-Institut für Radioastromie, Germany.

Yoshiko Miura (Biomaterials/Biosensors) Japan.

Fred M. Mueller (Solid State Physics) Los Alamos National Laboratory, USA.

Garth Nicolson (Illness Research, Cancer Cell Biology) The Institute for Molecular Medicine, Huntington Beach, USA.

Nina Papavasiliou (DNA Mutators, Microbial Virulence, Antiviral Defence, Adaptive Immunity, Surface Receptor Variation)

The Rockefeller University, New York, USA.

Panos Photinos (Physics) Southern Oregon University, USA.

Constantin Politis (Physics, Engineering) University of Patras, Greece.

Zhiyong Qian (Biomedical Engineering, Biomaterials, Drug Delivery) Sichuan University, CHINA.

Reinhard Schlickeiser (Astrophysics, Plasma Theory and Space Science) Ruhr-Universität Bochum, Germany.

Surinder Singh (Sensors/Nanotechnology) USA.

Suprakas Sinha Ray (Composites/Polymer Science) South Africa.

Koen Steemers (Architechture, Environmental Building Performance) University of Cambridge, UK.

Shinsuke Tanabe (Environmental Chemistry and Ecotoxicology) Ehime University, Japan.

James R. Thompson (Solid State Physics) The University of Tennessee, USA.

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Uwe Ulbrich (Climat, Meteorology) Freie Universität Berlin, Germany.

Ahmad Umar (Advanced Materials) Najran University, Saudi Arabia.

Frans de Waal (Animal Behavior and Cognition) Emory University, USA.

EDITORIAL BOARD

Filippo Aureli, Liverpool John Moores University, UK Marcel Ausloos, Université de Liège, Belgium Martin Bojowald, Pennsylvania State University, USA Sougato Bose, University College, London, UK Jacopo Buongiorno, MIT, USA

Paul Cordopatis, University of Patras, Greece Maria Luisa Dalla Chiara, University of Firenze, Italy

Dionysios Demetriou Dionysiou, University of Cincinnati, USA Simon Eidelman, Budker Institute of Nuclear Physics, Russia Norbert Frischauf, QASAR Technologies, Vienna, Austria Toshi Futamase, Tohoku University, Japan

Leonid Gavrilov, University of Chicago, USA Vincent G. Harris, Northeastern University, USA Mae-Wan Ho, Open University, UK

Keith Hutchison, University of Melbourne, Australia David Jishiashvili, Georgian Technical University, Georgia George Khushf, University of South Carolina, USA

Sergei Kulik, M.V.Lomonosov Moscow State University, Russia

Harald Kunstmann, Institute for Meteorology and Climate Research, Forschungszentrum Karlsruhe, Germany Alexander Lebedev, Laboratory of Semiconductor Devices Physics, Russia

James Lindesay, Howard University, USA

Michael Lipkind, Kimron Veterinary Institute, Israel Nigel Mason, Open University, UK

Johnjoe McFadden, University of Surrey, UK

B. S. Murty, Indian Institute of Technology Madras, Chennai, India Heiko Paeth, Geographisches Institut der Universität Würzburg, Germany Matteo Paris, Universita' di Milano, Italia

David Posoda, University of Vigo, Spain Paddy H. Regan, University of Surrey, UK Leonidas Resvanis, University of Athens, Greece Wolfgang Rhode, University of Dortmund, Germany Derek C. Richardson, University of Maryland, USA Carlos Romero, Universidade Federal da Paraiba, Brazil Andrea Sella, University College London, London, UK

P. Shankar, Indira Gandhi Centre for Atomic Research, Kalpakkam, India Surya Singh, Imperial College London, UK

Leonidas Sotiropoulos, University of Patras, Greece Roger Strand, University of Bergen, Norway

Karl Svozil, Technische Universität Wien, Auastria Kit Tan, University of Copenhagen, Denmark

Roland Triay, Centre de Physique Theorique, CNRS, Marseille, France Rami Vainio, University of Helsinki, Finland

Victor Voronov, Bogoliubov Laboratory of Theoretical Physics, Dubna, Russia Andrew Whitaker, Queen's University Belfast, Northern Ireland

Lijian Xu, Hunan University of Technology, China

Alexander Yefremov, Peoples Friendship University of Russia, Russia Avraam Zelilidis, University of Patras, Greece

Alexander V. Zolotaryuk, Ukrainian Academy of Sciences, Ukraine

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Advanced Science Letters

ISSN: 1936-6612 (Print): EISSN: 1936-7317 (Online)

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ERP Implementation in Industrial Construction Company

Oktalia Juwita,^a* Yan Watequlis Syaifudin,^b

aInformation System Department, University of Jember Jl. Kalimantan No. 37 Jember, 68121, Indonesia

b Politeknik Negeri Malang, Jl. Soekarno Hatta 09 Malang, Indonesia

*Corresponding author Email: [email protected] Received: October, 9th 2016 Accepted: November, 18th 2016

Enterprise Resource Planning (ERP) systems have transformed businesses around the word and become vital strategic tools in today’s competitive business environment. Process is more efficient, costs are reduced, positive customer service is more accepted. An ERP system allows an company to integrate all the primary business processes in order to enhance efficiency and maintain a competitive position. A business process is a collection of activities or tasks interrelated that takes one or more kinds of input and produces an output, such as a report or forecast, to achieve a particular purpose. This article discusses about how to determine the needs of ERP modules for the implementation of ERP in PT. XYZ, which is one of the national construction company. This article also presents business process in PT. XYZ. From that business process, the needs of ERP modules for PT. XYZ can be identified. The ERP modules used are ERP software package known as Industrial and Financial System (IFS) from Sweden, which is an ERP software package selected by PT. XYZ.

Keywords: Business Process, Enterprise Resource Planning (ERP), Industrial and Financial System (IFS)

1. Introduction

Enterprise Resource Planning (ERP) systems have become vital strategic tools in today’s competitive business environment. An ERP system allows an company to integrate all the primary business processes in order to enhance efficiency and maintain a competitive position. Enterprise Resource Planning (ERP) is cross-functional enterprise system driven by an integrated suit of software modules that supports the basic internal business processes of a company¹. A business process is a collection of activities or tasks interrelated that takes one or more kinds of input and produces an output, such as a report or forecast, to achieve a particular purpose. ERP software supports the efficient operation of business processes by integrating all tasks throughout a business².

The main purposes for adopting ERP are the modernization of systems, greater usability and flexibility, integration of systems, business process reengineering, an increase in the degree of electronic data interchange including the provision of Web-based interfaces to application systems, reduced maintenance and risk avoidance³.

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To adapt to today’s competitive business environment, companies are implementing ERP systems to reach a ability to plan and integrate enterprise-wide resources in order to shorten working times, and to be more responsive to customer demands ⁴. Implementing ERP systems help company to adapt to today’s challenging and competitive business environment⁵.

Another article defined that only a small number of ERP software are extended for the industrial construction company and this might be one reason of its slow implementation in the construction industry. The ERP software vendors must work with the professional in the construction industry to extended more customized solutions for the contracting companies⁶. As one of national construction company with solid reputation and achievement, PT. XYZ also need to implement ERP systems. The main business PT. XYZ is building many Power Plant, Fertilizer Plants, Cement Plant, Mining Plant, Recovery Boiler, Pulp and Paper Mills, Steel Mills ad Oil & Gas, and Petrochemical Plant around Indonesia.

PT. XYZ decided to use IFS applications (Industrial & Financial Systems) as ERP systems that implemented in the company. IFS is an ERP business application that was founded in 1983 in Sweden whose providing business application solutions. The modules exist in IFS is Forecasting and Planning, Procurement, Warehouse Management, Sales and Distribution, and Business Intelligent.

The applications are offered in IFS can be seen in the Figure 1.

2. Implementation Methodology

The main objective of this article is only to determine the modules and applications of IFS ERP system for PT. XYZ. To determine which modules and applications, the authors conducted observations and interviews on PT. XYZ. From the observation and interview, then the results are modeled into business processes so we can find the data that exist on the PT. XYZ. From the identification of business processes and data, we can list what modules and applications from IFS required by PT. XYZ to implement ERP systems. Previous research has indicated that an ERP system meets only 80% of the company’s functional requirements ⁷.

3. Business Process and Data Identification

To find ERP software modules what is needed by PT. XYZ, the authors conducted observation and interviews of main business processes running in PT. XYZ. From the results of the observation and interviews, obtained main business processes from PT. XYZ as in Figure 2 and Figure 3.

Based on business processes that have been described, the data obtained can be seen in Table 1.

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TABLE I. DATA EXAMPLE IN PT. XYZ

Data Example

Basic Data

 COA, Payment Term, Tax Code

 Delivery Condition Code

 etc

Master Data  Material Code

 Material Brand

 Supplier

 Customer

 etc Transaction Data  PR/RO

 PO

 MRR

 Invoice

 etc

4. ERP System Modules

Based on the main business processes illustrated in Figure 2 and Figure 3, then requirements to apply the result to implement IFS as follows:

A. The requirements for the Cross-Functional Component including:

1) Accounting Rules : It’s needed to automate accounting model that can handle the activities of companies, especially financial.

2) Project Management : according to the core business, namely in the field of construction, the required project management to support for all stages of a project life cycle, from initiation and planning to project execution and completion. By linking it to financial system, its can analyze actual costs and revenue throughout the project. It can used the project portal to monitor the progress of a project or track costs, hours, and per formance.

3) Quality Management : it’s used as tool for proactive quality management, from proactive decision making to failure prevention. It supports the entire production process, enabling to control parts in distribution, and inventory locations.

4) Project Reporting : to report all the progress project (every steps from the begining until the end of the project)

5) Document Management : It handles workflows, documents, drawings and includes templates, version and release management, and support for invoice scanning (OCR) and end lining.

B. The requirements of application modules on IFS ERP system including:

1) IFS Financial : it streamlines accounting process, enabling to strengthen controls at all levels of the organization. The applications that are used in IFS Financial module include: Budget

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management, Cash Flow, Accounts Payable, Accounts Receivable, Fixed Assets, Consolidated Accounts, General Ledger.

2) IFS Distribution : It gives bottom-line results by improving demand planning, minimizing inventory, enhancing customer service, and reducing order-to-delivery time. The applications that are used in IFS Distribution module include : Invoicing, Purchasing, Inventory.

3) IFS Engineering : It helps to improve product quality and reduce time-to-market. The applications that are used in IFS Engineering module include : Project Delivery, Engineering Change Management, PDM Configuration

4) IFS Sales and Services : The application that is used of this module is the Sales Contract Management with the aim to help the marketing department in making the contract with the clients.

5) IFS Human Resources : the use of the applications on IFS Human Resources module is as support systems. The applications are Recruitment, Expense Management, Time and Attendance, Payroll Administration.

5. Conclusion

The conclusions in the above discussion are:

1. ERP is needed for the modernization of a company to improve performance and compete with other companies.

2. ERP can be implemented in various types of companies or agencies that have business processes.

In this article was taken a company engaged in the field of construction and mining as an example.

3. In determining requirements the modules and applications on ERP implementation at a company really needs the business model of the company which has been running.

4. The main business processes in a company will determine the needs of applications in ERP implementations, and it also determine the need for supporting applications.

5. A research about implementation challenges during ERP systems implementation processes in PT.

XYZ can be done.

References and Notes

1. J.A. O’Brien, and G.M. Marakas. “Management Information Systems, Tenth Edition”, Mc Graw-Hill, New York (2011).

2. E.F. Monk, and B.J. Wagner, “Concepts In Enterprise Resource Planning, Fourth Edition”, Course Technology Cengage Learning, Boston (2013).

3. D. Oliver, and C. Romm, “ERP Systems in Universities: Rationale Advanced for Their Adoption”., Enterprise Resource Planning: Global Opportunities and Challenges, Idea Group, Hershey (2002).

4. K. Al-Fawaz, Z. Al-Salti, and T. Eldabi. The European and Mediterranean Conference on Information Systems, May 25-26; Al Bustan Rotana Hotel, Dubai (2008).

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5. D. O’Leary Daniel. Emerging Technologies in Accounting, Vol 1, pp.63-72 (2004).

6. S. Ahmed, I. Ahmad, S. Azhar, and S. Mallikarjuna, S. The ASCE Construction Research Congress, Winds of Change: Integration and Innovation of Construction, March; Honolulu, Hawaii, USA (2003).

7. S. Subramoniam, M. Tounsi, and K.V. Krishnankutty.”. Business Process Management, Vol. 15 (5), pp. 653 – 668 (2009).

Figure Caption

Figure 1. IFS Application

Figure 2. Business Process PT. XYZ

Figure 3. Continuation of Business Process PT. XYZ

Figure 1

Figure 2 Figure 3